Unexpected strategy: holding prices despite rising costs

Following the official release of the iPhone 17e lineup, attention has quickly shifted to the next generation, particularly the iPhone 18 Pro and Pro Max. Notably, multiple credible sources indicate that consumers may receive welcome news: prices could remain unchanged.

Renowned analyst Ming-Chi Kuo of TF International Securities believes Apple is likely to maintain current pricing for its upcoming premium models. This would be a significant move at a time when component costs, especially for memory and chips, are rising sharply.

According to Kuo, Apple is leveraging fluctuations in the component market to strengthen its competitive advantage. Instead of passing increased costs on to consumers, the company may choose to absorb them to expand market share.

This strategy reflects a clear direction - accepting lower hardware margins in the short term in exchange for long-term growth, particularly in services, which generate higher profits.

Another notable point lies in Apple’s product release strategy. Several sources suggest the company will launch the iPhone 18 Pro and Pro Max in the second half of 2026, while the standard iPhone 18 could be delayed until 2027.

If confirmed, Apple would continue prioritizing the premium segment, where it can maximize revenue and reinforce its brand positioning.

Currently, the iPhone 17 Pro starts at US$1,099, while the iPhone 17 Pro Max is priced from US$1,199. If these price levels are retained for the next generation, it would be a major advantage for consumers, especially as many competitors are raising prices.

Samsung, for example, has already increased prices for its Galaxy S26 lineup. This upward pricing trend is expected to spread across the industry due to mounting component cost pressures.

Further confirmation from analysts

Ming-Chi Kuo is not alone in this view. Another analyst, Jeff Pu of GF Securities, has offered a similar assessment, suggesting Apple is working to keep iPhone 18 Pro pricing in line with the previous generation through what he describes as “cost management”.

Specifically, Apple is reportedly negotiating with major memory suppliers such as Samsung and SK Hynix to secure more favorable component pricing. At the same time, the company is seeking to reduce costs in other areas, including camera modules and displays.

This comes as prices for DRAM and NAND - two critical components in electronic devices - have risen significantly in recent months. The surge is largely driven by booming demand from companies building AI infrastructure, which is pushing up production costs across the consumer electronics sector.

Foldable iPhone: high price, high expectations

Alongside the Pro lineup, another product drawing attention is Apple’s first foldable iPhone. While not yet officially confirmed, multiple reports suggest it could debut around the same time.

However, one thing appears almost certain: the price will be high.

At present, Apple’s most expensive model is the 2TB version of the iPhone 17 Pro Max, priced at US$1,999. This figure is also expected to serve as the starting price for the foldable iPhone.

Estimates suggest the 256GB version could begin at around US$2,000, with the 512GB and 1TB variants potentially reaching US$2,199 and US$2,399, respectively.

While these figures may seem steep, they are still lower than some earlier projections, which suggested the base model could start at US$2,399.

Launching an entirely new product line like a foldable iPhone amid volatile component markets presents significant challenges. Yet Apple appears willing to make a long-term bet.

A strategic move in a shifting industry

As the global tech industry faces mounting cost pressures, Apple’s decision to hold prices - if realized - would be a bold move.

Beyond attracting consumers, the strategy underscores a broader vision: sacrificing short-term margins to capture market share and build a foundation for future growth, particularly in AI-driven services.

From this perspective, the iPhone 18 Pro is not merely a hardware upgrade, but a strategic card in the intensifying global technology race.

Hai Phong